A recent report from Domain reveals that homebuyers are increasingly valuing sustainable features in their property choices, willing to pay up to 53% more for eco-friendly homes compared to traditional ones in certain suburbs nationwide. This shift reflects a growing necessity for energy-efficient housing solutions amidst rising home running costs.
Buyers are placing greater importance on sustainability and energy efficiency, recognizing the practical and environmental benefits they offer. Features like solar panels and eco-friendly orientation not only contribute to sustainability but also lower the overall costs of homeownership.
Melbourne leads the charge, with sustainable homes commanding a 28.8% premium on average, followed closely by Sydney at 23.1%. Despite a nationwide drop in the average premium from 17.9% to 14.5% over the past two years, there’s still a strong financial incentive for sellers to invest in sustainable features.
Individual home sales data further illustrates the substantial premiums that specific eco-friendly features command. For instance, a Melbourne house with solar panels can attract a premium of 64.4%, while a north-facing property sees a 59.8% increase compared to traditional homes.
Perth’s Como emerges as the suburb with the highest premium for sustainable homes at 53.4%, followed by Mosman in Sydney and Reservoir in Melbourne. These figures indicate a significant surge in demand for sustainable properties, driven by a growing awareness of their health, environmental, and cost benefits.
Middle-income Gen X and Millennial families are driving this trend, motivated by both financial savings and environmental consciousness. Solar panels remain the most popular sustainable feature, present in nearly 43% of homes sold.
As Australians increasingly prioritise sustainability in their housing choices, the demand for eco-friendly homes is expected to continue rising.
If you would like to speak to a broker to discuss your green home potential, click here to book a chat.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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